This declining retailer health is directly impacting malls and shopping centers in the form of very high vacancy rates and sluggish rents—exactly what you’d expect to see where supply exceeds demand. Both factors deteriorated quickly during the economic crisis of 2008-09, but they’ve shown virtually no improvement since in spite of improved economic conditions. The recession was the catalyst, but competition from online retailers can only be the continued driver. The mall business isn’t very healthy either. ...Continue reading @ Atlantic Cities...A not-so-cheery real estate investor characterizes the surplus of vacant space as not so much a "overbuilt" but rather "underdemolished." The source of that quote also adds some history about shopping malls:
Many of the earliest malls were buildings connected by pedestrian walkways and common areas, similar to today’s lifestyle center. Many malls began to turn inward in the 1960s and ‘70s, with the typical suburban mall composed of department stores and smaller shops connected by a roof, essentially forming an air-conditioned cave... Continue reading @ Costar...The Costar website has several other articles about revitalizing or reinventing shopping areas that are not thriving
- Can This Mall Be Saved? Elements Needed for a Turnaround Include Lower Debt, Deep Pockets,
- When Retail Won't Work: Alternative Uses for Converting Former Ghost Malls Back Into Income-Producing Property
Food for thought, as we mull the future of nearby shopping areas.
